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KeyBanc Initiates Coverage on Gap, Inc. (GPS) with a Hold; Fixing the Sales Gap

July 14, 2009 9:32 AM EDT
GPS Hot Sheet
Rating Summary:
    10 Buy, 11 Hold, 7 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
KeyBanc initiates coverage on Gap, Inc. (NYSE: GPS) with a Hold rating.

KeyBanc analyst says, "Gap's "it" moment may have passed, but members of management remain strong financial stewards. With approximately 3,149 stores, the retailer has a very mature - perhaps a euphemism for stale - brand portfolio. CEO Glen Murphy, who took his title in 2007, has taken aggressive steps to improve the Company's financial returns and capital efficiency. Management's steps to invigorate the merchandising and store experience are in the early stages, with a difficult macroeconomic climate driving fierce headwinds."

"While we do not think Gap will appear in the dustbin of retail, we remain attentive. It does not escape our attention that retail history is filled with countless companies that matured and lost relevance, eventually crippled by overly large store bases and increasingly active competitors."

To see more analyst ratings on GPS Click Here.

The Gap, Inc., through its subsidiaries, operates as a specialty retailing company.

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